The paper 'Role of Personal Consumption in My Life, Career Workbook Activities " is a perfect example of business coursework. The purpose of business is to make money. Businesses make money for the shareholders, its workers and people distributing their products. In fact, effective businesses also make money for the consumer; by providing essential goods and services at a reasonable cost, therefore saving them money. In short, businesses create wealth for society. The relationship between business and society is supposed to be mutually beneficial. Most of the responsible businesses today have principles that are towards the betterment of society.
These principles are usually evaluated at the end of the year alongside financial reports and are often titled as social or sustainability reports. This voluntary commitment of businesses to manage their activities in a sustainable way is commonly referred to as corporate social responsibility. This reflective journal will reflect on the role of personal consumption in my life, career workbook activities and my emergent views on professionalism. It will then link the three in relation to society and business in the conclusion. Personal consumption role in my life Personal consumption is actual and imputed spending (expenditure) on goods and services.
Imputed expenditure implies implicated spending in the case of transactions that cannot be measured directly in money terms, for example, hand made gifts. Personal consumption expenditure (PCE) is synonymous to the Consumer price index and also consumption. It is important to note that consumption is a generic (general) term while PCE is the official term used by Government and includes all the consumption. It is essentially a measure of goods and services bought from the gross domestic product (GDP) and utilized to satisfy citizens needs and wants.
It is the largest of the four expenditures since it involves all households. The other three expenditures include investment expenditure, government purchases and net export. My personal consumption has an influence on the economy. As I purchase durable goods (those that last more than a year), non-durable goods (like food, which last less than a year) and services, the economy grows. This is because by buying, I am providing markets for the goods and services and ultimately contributing to job creation.
Therefore the more individuals consume, the more the economy grows. When I do not spend, then I do save. Savings does increase my income, and when I do save in a bank, the money is borrowed by other people for spending or to finance capital investment. In a nutshell, I contribute to macroeconomic growth whether I spend or save. I understand that my personal consumption influences society and every individual in the world should take notice of that. The fundamental question that has puzzled mankind for decades is what is the carrying capacity of the world?
Or, how many people can the earth sustain without its resources being constraint? Many figures suggest that it is 12 billion people. But that is beside the point; I believe responsible consumption as an individual is critical in the quest for earth’ s sustainability. This is because modern society is definitely consuming more goods and producing more wastes than any society in mankind history, more so in the industrialized countries.
Work citedSvendsen, L Work, Acumen, Stocksfield UK. 2008, Print